Climate Report

The Riksbank needs to identify, analyse and manage climate-related risks, as these affect the Riksbank’s ability to achieve its statutory objectives and because it is a requirement under the Sveriges Riksbank Act. The Riksbank helps to increase knowledge about the impact of climate change on the economy. The Riksbank also takes sustainability into account in its asset management and internal work. In this way, the Riksbank contributes to sustainable development within the framework of its mandate.

The consequences of climate change affect the conditions for monetary policy through effects on inflation, economic growth and the neutral interest rate, among other things. For example, recent studies show that inflation can be affected by both transition risks and physical risks related to climate change. To enable the Riksbank to make the best possible monetary policy decisions, further improved knowledge about both the effects and how these are to be incorporated into the formulation of monetary policy.

Climate risks may entail stability risks for the financial system. At present, the transition risks for Swedish banks appear to be limited. However, these may increase if climate mitigation and adaptation measures are not taken and the risk of a disorderly transition increases. The financial system also plays an important role in channelling investment for the transition. Data reporting requirements on exposures to climate-related risks will be strengthened in 2025. This will help to ensure climate risks are priced more accurately and to discourage greenwashing, and thereby facilitating necessary investments.

The Riksbank is expanding reporting of the carbon footprint from the foreign exchange reserves. In its asset management, the Riksbank identifies, analyses and manages sustainability-related financial risks. An important part of this work is to monitor and report on the carbon footprint of the management. The foreign exchange reserves account for a large part of the Riksbank's financial assets and, as of 2025, the Riksbank will expand the reporting of its carbon footprint to promote transparency and increase comparability regarding the climate impact of financial assets.

The climate impact from Swedish payments is very low. The Riksbank’s mandate in the area of payments includes making cash available to a satisfactory extent throughout Sweden, and ensuring that the public can make payments during peacetime crisis situations and states of heightened alert. The Riksbank is working continuously to reduce the carbon footprint of payments. Cards and cash are the means of payment that contribute the highest climate impact per payment in Sweden. The total climate impact of all card and cash payments in Sweden is less than the total emissions from 2,000 Swedes in one year.